There is no provision under the SARFAESI Act, 2002 which makes it mandatory on the part of Bank to make a publication of every equitable mortgage in the newspapers – State Bank of India and Anr. Vs. Shyamal Chakraborty and Ors. – DRAT Kolkata
In this case, R1&2 purchased the flat in dispute which was constructed on a piece of land mortgaged by R3 in favour of the bank by creating equitable mortgage by depositing title deed. DRT has placed heavy reliance on the point that no publication of equitable mortgage was made by the appellant bank either by affixing notice on the flat or by publishing the same in the newspapers.
